Be Ready, Buyers! Your Time To Shine Is Around The Corner

I remember 2020 & 2021 vividly. Who doesn't? It was a time of uncertainty, fear, chaos, and oddly enough while small businesses and employees struggled with income, the spending was off the charts! I recall the lines of buyers and their agents outside homes being lenghthy, stressful, and scary for buyers. The seller demands to waive appraisals, inspections, and even loan approval periods was pure insanity! I recall reading and listening to online posts from other professionals making statements like "Who cares if the price is high, the rate is low." "The market is not going to crash. It's not the same.", "This isn't a housing bubble". Those same 'professionals' are changing their tunes. Most are using the softer (and more appropriate) language and stating there is a 'Shift' happening. In regards to the current interest rates, I read and watch horrible statements like "Marry the house, date the rate". That one infuriates me and here is why... I am an REO broker aka Bank Owned broker. I sell distress properties. Part of my tasks with foreclosures is knocking on doors. I firsthand hear, see, and empathize with homeowners who lost their homes due to death of a spouse, loss of job, an accident that left them disabled. It's heartbreaking to witness, but I'm thankful I am there to help them through it while doing my job. So with my background and experience in the last 23 years, it is IMPERATIVE that I only speak truth and conduct my business with the utmost integrity. How I help my family is how I help my customers and clients.

So what is to come? Well, let's review some easy tell tale signs. Rental prices. Believe it or not, rental prices declining is a tell tale sign that a shift is in progress. Why? Because renters and homeowners are not all that different from each other. We all have budgets and we all need to stay within those budgets. Seeing renters not be able or willing to spend as much as they could before is absolutely a sign of a declining market. A client of mine currently looking at rentals took my advice and is extending his lease for a few months, because I showed him the decline. Just 6 months ago the community he wants to be in had rentals on average of $3700 a month. They are now averaging around $2800 a month! Huge difference. Those houses pre-2020 were renting for around $2400. Now, each community is different and so you must look at the data in order to know where it's headed and at what rate.

Another tell tale sign is marketing time. This bit of information is something many listing agents don't quite value or even notice. It's definitely something I educate sellers with, because it's extremely important. To give you an example of the importance, picture three houses listed for sale. Two went under contract and sold under 30 days. The third is still listed and has been on the market for 65 days. A buyer thinks...those two houses sold under 30 days. What's wrong with the third house? What's wrong with the seller? When looking at a community for signs of a shift, an easy method is to look at marketing time. This is always the first sign. Covid era we saw 1 day average marketing time. ONE DAY. Then it crept up to a few weeks. I remember after a few years of quick fast and in a hurry sales, the feeling of a property being on the market for a few weeks. It was a very uneasy feeling. As properties sit on the market 30+ days, more properties are listed. The more properties listed, the better for buyers because having competition keeps sellers from thinking they hold all the cards...and the house.

Yet another sign...Seller concessions. Yes! Especially right after the demand era aka Covid era, sellers weren't bending at all. A house needing extensive repairs was selling the same or even higher than houses needing little to none. It was insanity. But suddenly, we are seeing concessions after inspections are done. And this is wonderful!

Here's another easy sign to watch for and that I am seeing. Sold prices vs listed prices. Take it a step further and include what is pending and you'll be able to see a clear path of when it'll be a healthy buyer market.

Last bit of information for you is to review foreclosures. I can see as an REO broker the signs we are about to have REOs hit the market in 2025 and in fact, they are hitting the market as I type this. You can visit your clerk of court site and view foreclosure auctions and watch the numbers climb. You can look at foreclosure auction site career opportunities and see the auctioneer job ads. You can watch and listen to investor ads inviting homeowners to sell their ugly house to them and who sells a house to an investor? Usually someone who can't wait to get out from under it. And what happens when foreclosures hit a neighborhood? Speculation, aprehension, and lowering prices.

The signs are all here! So I recommend if you're selling to buy, call me (561-767-1258) and we can review the data for you to make an informed decision. If you are renting, call me (561-767-1258) so we can review your lease term and what the next steps should be. Fix your credit, save your cash, and write your list of wants in a home, because I see good times ahead for buyers!